U.S. Federal Reserve Board, called FED, the maximum monetary policy for the United States competent authority responsible for the custody commercial bank reserves, commercial bank loans and issuance of Federal Reserve Notes. FED is divided into three-tier organization, up to the Council, under which is the 12 Federal Reserve Bank and the Reserve Bank's member banks. August 2009 U.S. President Barack Obama announcing his nomination for re-election the U.S. Federal Reserve Chairman Ben Bernanke, his second four-year term starting from January 2010.
U.S. Federal Reserve - the specific characteristics of U.S. Federal Reserve in an independent and the basic principle of checks and balances. The checks and balances, the council's seven directors (including the Chairman, Vice-chairman) noted the nomination by the president, and subject to consent of the Senate. For the monetary policy decision, such as the increase or reduction of the rediscount rate, using collegiate and voting system, one vote, and for a secret ballot, the President's vote is usually cast already in the majority party. While the president can keep abreast of directors with the President, Vice-Chairman of the nomination, but, once approved by the Senate for a term up to fourteen years, may be served a maximum of five president.
As for independence, FED to personnel and budgetary independence of the most acclaimed independent, in addition to the Council, the other also has the Federal Open Market Committee (FOMC), responsible for longer-term monetary policy decisions and in accordance with the guiding principles of foreign exchange, foreign exchange operations of the authorization procedures for foreign exchange operations and foreign exchange operations. As the dollar in international currency markets, a strong position, the U.S. Federal Reserve intervention in the foreign exchange market, especially by the foreign exchange market attention. A result of trade surpluses, while the yen soared, the Japanese central bank intervention in currency markets to be successful, the best access to the Fed's assistance and cooperation.
The Federal Reserve is also the formulation of U.S. monetary policy leaders, in October 1993, the United States the economy rising fast, posing a danger of inflation, thanks to the then Chairman of the Board who is also the Federal Reserve Alan Greenspan (Green Spain) in disregard of public opinion and political pressure, the continuous increase in the discount rate seven times to make a successful soft landing for the U.S. economy, free from the threat of inflation.
